[ad_1]
When I drive to Delhi or Mumbai, I see a lot of cars around me, but Skodas, the CEO of the Czech carmaker Skoda Bernhard Maier, announced Monday after announcing his intention to invest 79 billion Rs. The two brands together hold less than 2 percent market share in India, the fifth largest market for pbadenger cars (cars, vans and commercial vehicles).
Skoda entered India 17 years ago, while Volkswagen brands are struggling to develop and underutilized manufacturing units. "There have been criticisms of how this big group (Volkswagen) was attacking the Indian market," Maier said. Skoda was chosen by the group to carry out its operations in India.
The goals of gaining a higher market share have gone bad for the group up to now. Maier, however, said India 2.0 – their new plan – is clear, strong and consistent. The group plans a combined 5 percent share in India by 2025.
ALSO READ: The Volkswagen Group puts Skoda on the driver's seat for India, Emerging Markets
] The investment of Rs 79 billion will be done in capacity building, R & D, new technologies and products by 2021. Volkswagen and Skoda will each receive two new cars by 2020, with a localization greater than 90%. A mid-size SUV will be the first product for both brands, developed on a shared platform. The current range of the group has a low localization (50-60 percent), which makes price competitiveness and property less expensive.
"I'm not here to stand up and say we want to have 25 cents on the market, I'm aiming for sustainable growth with a sustainable business case, something that will lead us into the future and put us in position to lead this transformation, "Maier told Business Standard in an interaction. India 2.0 was important because we were not happy with our performance in India, he added. "India is seen as one of the fastest growing markets. Last year, 3.2 million vehicles were sold and 5 to 6 million could be sold in the coming years. We want to take advantage of that.We mean business and the proof is this investment decision. "Exports will also be part of Strategy 2.0. Skoda will set up an engineering center in Pune that will design and develop for both brands. The center will initially have 200 engineers.
Gurpratap Boparai, general manager of Skoda in India, said the expansion of the capacity and engineering center could gradually create 4,000 to 5,000 additional jobs. The group also plans to expand its presence in India with a focus on Level II and III cities. The network of brands now covers only 17% of the Indian market and it will be doubled to the next stage.
The group aims to offer "world clbad products" at prices equivalent to a "paradigm shift" in the automotive sector. industry. Skoda, on behalf of the Volkswagen Group, had announced its intention to jointly develop cars for emerging markets, including India, with Tata Motors in early 2017. The group said it was now creating the "Good conditions" for "sustainable" growth. However, the two firms ended the talks in August for lack of "desired synergies".
While Volkswagen decided for the moment to go solo in India, Maier said the group had not closed all chapters. mutually beneficial transactions.
[ad_2]
Source link
